“Not your keys, not your crypto.”
- A public key (used to generate your wallet address)
- A private key (the 'password' for your crypto wallet)
on centralized exchanges, you have usernames and passwords.
but not your private keys/seed phrase.
so it’s a custodial account.
You need the platform’s approval to access your assets.
Your public key is created via a one-way process.
So that private key maps onto the public one.
You can prove ownership of the public key without actually revealing the private key.
first level: protect your keys.
public key + wallet address: used for interaction
seed phrase + private key: hide them
store the private key on fireproof cards.
And then put them in the safe deposit box.
If you want to use DeFi or exchange your crypto,
get a hardware wallet.
Read @withsmoothie’s article on cold wallets:
https://twitter.com/withsmoothie/status/1562103905609457667?s=20&t=gBFIEBA5P-ItidKRKXWe4Q
It isolates your private key from the rest of the world.
You download your keys onto the device and only plug it in when you need to trade.
It’s like a safety deposit box with multiple keys.
The wallet requires multiple signatures to approve a single transaction.
You need to find trusted people for your multi-sig.
even if you lost your private key, a thief still can’t trade your money.
@VitalikButerin prefers this way.
It includes all the levels above.
Spread your funds over many types of wallets to protect funds.
Like what Voldemort did to protect his soul.
Self-custody also entails risks.
You might send crypto to wrong address or lose your seed phrase.
Trusted Custodians like @BitGo and @Gemini offer custody services.
They specialize in crypto security.
And they got insurance if something bad happens.
If you lose your seed phrase/ private key,
social recovery needs signers to give you back access to your assets.
@loopringorg and @argentHQ offer the tool.
https://twitter.com/jackniewold/status/1593721076298776592?s=46&t=JKWoCs91mb6D95aepDzxCw
Many feel disappointed about web3 post-FTX.
Many initiatives are essentially centralized platforms built on decentralized foundations.
But finances are vital parts of web3 economy too.
I love the reminder of @TPan_Web3:
The beauty of Web3 is that the foundational technology of blockchain has a multitude of applications.
Web3 adoption and development are still on the way, to a better future.
@MetaMask
@exodus_io
@bluewalletio
@TrustWallet
@InfinityWallet
@GetLinen
@GuardaWallet
@thisisarculus
@Ledger
@SecuXwallet
@Trezor
@cryptokeepkey
@UniPassID
@AmbireWallet
@pillarwallet
@authereum
@argentHQ
“multi-party computation” requires more than one participant to authorize transactions.
@QredoNetwork
@OpenBlockWallet
@SepiorKMaaS
@ZenGo
@Safeheron
@FireblocksHQ
@PocketUniverseZ
@wallet_guard
@brave
@LiquityProtocol
@AaveAave
@neptunemutual
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